After enduring five weeks of sell-off, Bitcoin, the world’s largest cryptocurrency, has undertaken a bull run, reclaiming its previous highs of above $51k.Â
Over the last 24 hours, Bitcoin surged by 3%, reaching a price of $51,113. Bitcoin is now trading at around $50,830 as of this writing.
The five day price chart for Bitcoin (BTC). Source: Tradingview
Bitcoin to Hit $200k in 2022
As Bitcoin reclaims its earlier highs, Tom Lee, a managing partner at Fundstrat Global Advisors, has predicted that Bitcoin could be valued at as much as $200,000 in 2022, despite a rather disappointing end to 2021.
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Popular crypto analyst Nicholas Merten, in plotting a potential price path for Bitcoin, reached the same conclusion as Tom Lee, speculating that Bitcoin could quadruple in price at some point in 2022, thus leading to a $200k valuation.
Prior to Bitcoin’s all-time high of $68.8k on November 10th, Tom Lee had predicted that the approval of the ProShares Bitcoin ETF would drive the price of BTC to new highs. While this did indeed come to pass, the bulls could not sustain the upwards momentum, leaving Bitcoin to peak significantly below his forecasted $100k valuation.
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The CEO of Microstrategy, Michael Saylor, is also bullish about the future of Bitcoin, believing that Bitcoin will replace gold in the future as it journeys towards a $6 million valuation.
On the Flipside
- According to Steve Hanke, a professor of applied economics at Johns Hopkins University, while we know the price of Bitcoin, its value is probably zero.
Why You Should Care
As an asset, Bitcoin has matured in 2021, displaying heightened usability and resilience to bearish pressure – factors that could all assist in its path to dominance.
